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I don't know what things are like in the US, but in the UK the majority of small independent bookshops have closed in the last 20 years; they just can't complete with the big chains like Waterstones, and even less with Amazon. The only ones who are still doing well tend to be the specialist shops. I have a friend who runs a specialist SF and Media bookshop. He has customers all over the world, who come to him for his knowledge, not his prices.
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